Copper climbs on China demand as Fed hike clears uncertainty
XLB•Other LME and SHFE metals
Among LME metals, aluminium CMAL3 lost 0.49%, zinc CMZN3 added 0.27%, lead CMPB3 added 0.18%, nickel CMNI3 added 0.45% and tin CMSN3 added 0.19%.
Among SHFE metals, aluminium SAFcv1 lost 0.68%, zinc SZNcv1 gained 0.51%, lead SPBcv1 gained 0.71%, nickel SNIcv1 dipped 0.11% and tin SSNcv1 gained 0.9%.
Copper rises on rate-hike clarity and China demand
Copper prices edged up on Monday, as last week's interest rate hike by the US Federal Reserve dispelled months-long uncertainty over rates, while optimism persisted over strong China demand.
Benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.38% at $14,577 a metric ton by 0700 GMT.
Earlier, the price hit $14,644.5 a ton, its highest since September 10, when it hit a peak of $14,875. The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.59% to 110,180 yuan ($16,455.83) a ton.
Support from inventories, holiday replenishment and broader metals trade
The Fed hike removed the biggest near-term uncertainty in the copper market, while extreme mine-side tightness and ultra-low Chinese domestic inventories still formed a floor, analysts from Chinese broker Everbright Futures said in a note on Monday.
Higher interest rates can weigh on growth-dependent commodities like copper by dampening growth.
Strong demand in biggest consumer China continues to support prices. The Yangshan copper SMM-CUYP-CN, a gauge of Chinese demand for imported copper, finished last week at $124 a ton, its highest in nearly four years.
Expectations for inventory replenishment ahead of next week's National Day holiday in China also offered price support, according to the Everbright Futures analysts.
